PennantPark Floating Rate Capital upsizes credit facility to $736 million, maintaining pricing and enhancing middle-market lending capabilities.
Quiver AI Summary
PennantPark Floating Rate Capital Ltd. (PFLT) announced an increase in its credit facility, led by Truist Bank, from $636 million to $736 million, while keeping the pricing unchanged at SOFR plus 225 basis points. CEO Arthur Penn expressed gratitude for the support from lending partners, which underscores confidence in the company's strong track record. The larger facility will enhance PFLT’s ability to provide senior secured solutions to middle-market clients, allowing it to capitalize on more attractive risk-adjusted returns compared to the upper middle market. The credit facility is secured by the assets of a subsidiary and includes typical covenants related to asset coverage and equity requirements.
Potential Positives
- PennantPark Floating Rate Capital Ltd. successfully upsized its credit facility from $636 million to $736 million, indicating increased financial capacity.
- The unchanged pricing at SOFR plus 225 basis points suggests favorable borrowing conditions and maintains cost predictability for the company.
- The enhancement of the credit facility is expected to expand PFLT's ability to serve middle-market clients, potentially driving business growth and client satisfaction.
- The facility's structure offers risk-adjusted returns that include higher yields and lower leverage, positioning the company strategically in the middle market.
Potential Negatives
- The upsizing of the credit facility may indicate a need for increased borrowing, which could signify potential liquidity issues or a reliance on debt financing.
- The press release emphasizes the existence of covenants such as minimum asset coverage and minimum equity requirements, which may suggest constraints on the company's financial flexibility.
- The warning about forward-looking statements and the mention of risks and uncertainties could raise concerns among investors about the company's future performance and stability.
FAQ
What is the new size of PennantPark's credit facility?
PennantPark Floating Rate Capital Ltd. has upsized its credit facility to $736 million from $636 million.
Who leads the increased credit facility for PennantPark?
The credit facility is led by Truist Bank.
How does the credit facility pricing structure work?
The pricing on the facility remains unchanged at SOFR plus 225 basis points.
What types of companies does PennantPark primarily invest in?
PennantPark primarily invests in U.S. middle-market private companies through floating rate senior secured loans.
What advantages does the increased facility provide PennantPark?
The increased facility expands PennantPark's ability to serve middle-market clients with comprehensive senior secured solutions.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$PFLT Hedge Fund Activity
We have seen 51 institutional investors add shares of $PFLT stock to their portfolio, and 63 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- STRATEGIC FINANCIAL CONCEPTS, LLC removed 637,206 shares (-91.2%) from their portfolio in Q3 2024
- MARSHALL WACE, LLP added 583,710 shares (+1696.0%) to their portfolio in Q3 2024
- MILLENNIUM MANAGEMENT LLC removed 451,235 shares (-57.6%) from their portfolio in Q3 2024
- TWO SIGMA ADVISERS, LP removed 415,478 shares (-37.2%) from their portfolio in Q3 2024
- SCOGGIN MANAGEMENT LP removed 409,499 shares (-100.0%) from their portfolio in Q2 2024
- VAN ECK ASSOCIATES CORP added 330,731 shares (+22.5%) to their portfolio in Q3 2024
- CITADEL ADVISORS LLC removed 307,215 shares (-90.2%) from their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
MIAMI, Dec. 26, 2024 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (“PFLT”) (NYSE: PFLT) announced that it has upsized its credit facility, led by Truist Bank (the “Credit Facility”) to $736 million from $636 million. Pricing on this facility remained unchanged at SOFR plus 225 basis points.
“We are appreciative of the support from all of our existing lending partners. Their support highlights the confidence they have in our excellent long-term track record,” said Arthur Penn, Chairman and Chief Executive Officer of PFLT. “We expect that this increased facility will expand our ability to serve middle-market sponsor and borrower clients by providing them with more comprehensive senior secured solutions. We believe that this enhanced credit facility positions us well to capture the opportunity in the core middle market, where our capital is strategic to our borrowers. As a result, we believe that the package of risk adjusted return we receive is attractive and includes higher yields, lower leverage and covenants which are not available in the upper middle market.”
The Credit Facility is secured by all of the assets held by PennantPark Floating Rate Funding I, LLC, a wholly-owned subsidiary of the Company, and includes customary covenants, including minimum asset coverage and minimum equity requirements.
ABOUT PENNANTPARK FLOATING RATE CAPITAL LTD.
PennantPark Floating Rate Capital Ltd. is a business development company which primarily invests in U.S. middle-market private companies in the form of floating rate senior secured loans, including first lien secured debt, second lien secured debt and subordinated debt. From time to time, the Company may also invest in equity investments. PennantPark Floating Rate Capital Ltd. is managed by PennantPark Investment Advisers, LLC.
ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC
PennantPark Investment Advisers, LLC is a leading middle market credit platform, managing approximately $8.9 billion of investible capital, including leverage. Since its inception in 2007, PennantPark Investment Advisers, LLC has provided investors access to middle market credit by offering private equity firms and their portfolio companies as well as other middle-market borrowers a comprehensive range of creative and flexible financing solutions. PennantPark Investment Advisers, LLC is headquartered in Miami, and has offices in New York, Chicago, Houston, Los Angeles and Amsterdam.
FORWARD-LOOKING STATEMENTS
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports PennantPark Floating Rate Capital Ltd. files under the Exchange Act. All statements other than statements of historical facts included in this press release are forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. PennantPark Floating Rate Capital Ltd. undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.
CONTACT:
Richard T. Allorto, Jr.
PennantPark Floating Rate Capital Ltd.
(212) 905-1000
www.pennantpark.com
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